The fuzzy mathematics of finance
The author proposes an alternative... to using exact numbers for interest rates, cash amounts, and time periods in elementary financial calculations. The alternative is to use fuzzy numbers for interest rates and cash amounts and a positive discrete fuzzy set for the duration of an investment. The author discusses the future value, the present value of fuzzy cash amounts using a fuzzy interest rate. He shows that the popular internal rate of return procedure does not generalize to fuzzy net cash flows.
scientific article; zbMATH DE number 3993250